3

Pierr Manufacturing Inc. has provided the following information concerning its manufacturing costs:

Fixed Cost per Month

Cost per Machine-Hour

Direct materials				$	5.70
Direct labor	$	42,900
Supplies				$	0.20
Utilities	$	1,200		$	0.10
Depreciation	$	14,600
Insurance	$	11,500

For example, utilities should be $1,200 per month plus $0.10 per machine-hour. The company expects to work 4,300 machine-hours in July. Note that the companys direct labor is a fixed cost.

Required:

Complete the companys planning budget for manufacturing costs for July.

Pierr Manufacturing Inc.
Planning Budget for Manufacturing Costs
For the Month Ended July 31
Direct materials
Direct labor
Supplies
Utilities
Depreciation
Insurance
Total manufacturing cost